Cashed-up investors are seeking new opportunities across Victoria and with limited stock on the market, prices are driving north.
Vacant properties throughout the industrial sector are attracting plenty of heat with an average time on the market of three to four weeks, compared to the usual eight and more weeks.
“The industrial sector is sitting very strong at the moment and we foresee that strength continuing well into the new year,” he said.
“The vacant listings appear to be more desirable for owner-occupier investors who are prepared to pay more.”
There is a drop in the market for office spaces, which seems to be a significant consequence of Melbourne’s lockdowns.
“It is a tough market at the moment, but we do predict a shift as a few normalities return to the workforce and employers welcome back their staff in the new year,” Mr Klein said.
The retail sector is proving to be the most erratic in the commercial market, with both strong and weak patches.
Melbourne’s popular retail strips such as Church Street in Brighton, Brunswick Street in Fitzroy and Carlisle Street in Balaclava continue to ‘perform really well'.
“Retail is a bit patchy with some parts proving strong and others trailing behind,” Mr Klein said.
“If a property is tenanted with a good lease in place, it will typically perform better and is highly sought-after over vacant properties.”
Market confidence is rising and buyer activity is moving again, Mr Klein added.
“It seems investors are quite cashed up and just waiting on quality stock to hit the shelves, there is a lot of demand for tenanted properties at the moment,” he said.
“Market activity was definitely quieter through the lockdown, but the change in pace is evident, things are moving and confidence has been restored.”
Two recent auctions held within two hours on Brunswick Street, Fitzroy went ‘exceptionally well.'
“We had a great amount of interest for both, but the key was they were both tenanted and had really good, long leases in place,” Mr Klein said.
Barry Plant Commercial leverages off the strong network of buyers, sellers, renters and rental providers from the wider Barry Plant group. The collaborative efforts ensure both buyers and sellers are offered every possible opportunity.
Mr Klein predicted a fiery start to 2022 with no signs of slowing over the next quarter.
“People have money to spend, and they are waiting for quality stock, so there couldn’t be a better time to sell.”